CalPERS to Boost Allocation to Private Equity and Private Credit at the Expense of Global Equities

Posted on 06/28/2022

The California Public Employees Retirement System (CalPERS) is changing its asset allocation, shifting capital toward private equity and private credit at the expense of global equities. In the first six months of 2022, CalPERS lost tens of billions from investments.

CalPERS increased allocation to private equity from 8% to 13%, private debt from 0% to 5%, real assets from 13% to 15%, fixed income from 28% to 30%. Reductions in investment targets include global equities from 50% to 42% and liquidity allocation from 1% to 0%.

CalPERS (@CalPERS) tweeted, “Over the past decade we’ve made strides to improve our funded status and reduce investment risk. We’ve increased liquidity, taken more defensive positions in the public markets and added a prudent amount of leverage to increase diversification. #CalPERSInvests”

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